Non Domestic Rates – Retail Rate relief 2019/20, 2020/21 and 2021/22 and Nursery Discount
In the Autumn Budget 2018 the Government introduced a new Retail Relief which will be available for the years 2019/20 and 2020/21
Properties that will benefit from the relief will be occupied hereditaments with a rateable value of less than £51,000 , that are wholly of mainly being used as shops, restaurants, café’s and drinking establishments. From 1 April 2020 this has been extended to cinemas and music venues.
In the Budget on 11 March 2020 the Government announced that the retail relief award will increase from 50% to 100%, as from 1 April 2020. The scheme will also be expanded to include hospitality and leisure properties (such as museums, theatres, gyms, and hotels).
Further to the Budget announcement the Government has removed the rateable value cap of £51,000 from 1st April 2020 onwards. The scheme has also been extended to estate agents, letting agents, betting shops and employment agencies.
In the Spring budget on 4 March 2021 the Government announced that the 100% Expanded Retail Relief and Nursery Relief schemes will be extended three months for the period 1 April 2021 to 30 June 2021.
For the period 1 July 2021 to 31 March 2022 the scheme will be changing as follows:
- From 1 July 2021 to 31 March 2022, businesses in receipt of the Expanded Retail Relief discount will receive a 66% reduction in the amount to pay. There will be a cash cap of £2million for businesses that were required to close as at 5 January 2021 and up to £105,000 for businesses permitted to open at that date.
- From 1 July 2021 to 31 March 2022, businesses in receipt of the Nursery discount will receive a 66% reduction in the amount to pay. There will be a cash cap of £105,000.
Businesses may choose to opt out of the relief schemes by emailing firstname.lastname@example.org. If you do so, then you cannot opt in again for 2021/22.
The Government consider shops, restaurants, café’s and drinking establishments to mean:
- Hereditaments that are being used for the sale of goods to visiting members of the public:
- a. Shops (such as florists, bakers, butchers, off licence, stationers, jewellers, chemists, hardware stores, supermarkets etc)
- b. Charity Shops
- c. Opticians
- d. Post offices
- e. Furnishing shops/ display rooms (such as carpet shops, double glazing, garage doors)
- f. Car / Caravan show rooms
- g. Second hand car lots
- h. Markets
- i. Petrol Stations
- j. Garden centres
- k. Art Galleries (where art is for sale/hire)
- Hereditaments that are being used for the provision of the following services to visiting members of the public:
- a. Hair and Beauty services (hair dressers, nail bars, tanning shops etc)
- b. Shoe repairs/key cutting
- c. Travel agents
- d. Ticket offices (for example for a theatre)
- e. Dry cleaners
- f. Launderettes
- g. PC/TV/domestic appliance repairs
- h. Funeral directors
- i. Photo processing
- j. DVD/Video rentals
- k. Tool hire
- l. Car hire
- Hereditaments that are being used for the sale of food and/or drink to visiting members of the public:
- a. Restaurants
- b. Takeaways
- c. Sandwich shops
- d. Coffee shops
- e. Pubs
- f. Bars
To qualify the hereditament should be wholly or mainly used as shown above, this is a test on use rather than occupation. Therefore hereditaments which are occupied but not wholly or mainly used for a qualifying purpose will not qualify for the relief.
The list below shows some uses that are not considered to be retail use for the purposes of this relief.
- Hereditaments that are used for the provision of the following services to visiting members of the public:
- a. Financial services (banks, building societies, cash points, bureau de change, payday lenders, betting shops, pawn brokers)
- b. Other services (estate agents, letting agents, employment agencies)
- c. Medical services (vets, dentists, doctors, osteopaths, chiropractors etc)
- d. Professional services (solicitors, accountants, insurance agents, financial advisors, tutors etc)
- e. Post office sorting office
- Hereditaments that are not reasonably accessible to visiting members of the public.
Apply for Retail Rate Relief
You can apply using the following eform.
The amount of relief available for each property for 2019/20 is calculated as approximately 33% of the balance that you would otherwise have to pay. From 1 April 2020 this has been increased to 100%. There is no relief available for empty properties.
The eligibility for the relief and the relief itself is assessed and calculated on a daily basis. The retail relief will be applied against the net bill after all other reliefs have been applied.
You can have this relief on more than one property, subject to State Aid De Minimis Regulations. Read more State Aid guidance on https://www.gov.uk/guidance/state-aid
Properties that will benefit from the relief will be hereditaments occupied by providers on Ofsted's Early Years Register and wholly or mainly used for the provision of the Early Years Foundation Stage.
Applications for this relief can be made by e mailing email@example.com